Trans-Siberian said it produced 9,260oz in the June quarter, and 26,456oz of silver, at Asacha in Kamchatka, a peninsula in far east Russia. For the first half gold production grew 26% year-on-year to 21,889oz, and silver production increased 42% to 59,787oz.
Total revenues for the second quarter increased 14.7% year-on-year to $13.8 million.
For the half as a whole, the company’s revenue was $29.9 million, up 8.6% yoy. More than 22,060oz of gold was sold at an average $1,312/oz.
Average June-quarter head grade was up 33% yoy at 8.4g/t gold.
“We are very pleased to announce record interim revenues of nearly $30 million for 2019, reflecting a very strong performance for the first six months of the year,” said Trans-Siberian Gold chief executive Alexander Dorogov. “We are on track to meet our full year production target of 40-44,000oz.”
“Russian companies sometimes have the risk profile of African countries. This can’t be right”
Dorogov told Mining Journal in a recent interview he felt international investors under-rated the country and companies that operated there.
“Russia is much more stable than we hear it is given credit for,” he said. “Russian companies sometimes have the risk profile of African countries. This can’t be right. Kamchatka is a comfortable jurisdiction with tax incentives and low energy costs. There are seldom tax or licence changes.
“The Russian government identified Kamchatka as a territory for advanced technological development. Tax and royalty arrangements are favourable, and there’s no income and property tax, so it’s quite attractive.”
Gold produced at Asacha is transported by helicopter 150km to the coast, where it can be exported by air.